evs investors 2009q2 revenue 090716 analysts edit v3...l ki t t t s h t t t d b evs b d k l d...

2Q09 revenue

July 16, 2009

Pierre L’Hoest, CEOJacques Galloy, CFO

www.evs-global.com1

Geoffroy d’Oultremont, IRO

Forward Looking Information

The statements made in this presentation that are not historical facts contain forward looking information that involves risks and uncertainties All statementsforward-looking information that involves risks and uncertainties. All statements, other than statements of historical fact, which address EVS Group’s (“EVS”, “XDC” or the “Company”) expectations, should be considered as forward-l ki t t t S h t t t d b EVS b d k l d flooking statements. Such statements made by EVS are based on knowledge of the environment in which it currently operates. Because of factors beyond its control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, financing risk, acquisition risk, changes in technology, and other risks as outlined in the filings with securities regulators and can also be found at www.evs-global.com

www.evs-global.com2

Agenda

FinancialsFinancials

Business updateBusiness update

Outlook

Corporate

www.evs-global.com3

Agenda



Outlook

Corporate

www.evs-global.com4

Highlights 2Q09 revenue

Continued challenging environmentContinued challenging environment

Sound LT market fundamentals (sport, tapeless, HDTV, web/3G)

2Q09 revenue: EUR 18.7 million

-45.8% vs. 2Q08, but +4.7% vs. 1Q09 and +36.8% vs. 4Q08

Open order book (as of July 1) of EUR 8.0 million

-51.2% vs July 1, 2008 excl. big event rentals

2009: bridging year towards 2010

www.evs-global.com5

2Q09 revenue of EUR 18.7 millionPost big event impact combined with industry slowdownPost big event impact combined with industry slowdown

20082007 200937.2

34.4

20082007 2009

24.121.9

23.324.4

27.225.4

Quarter Big Events RentalsQuarter Revenue

LaunchINSIO

XS

18.717.8

13.6

20.1

16.419.019.919.7

16.6

11.9Launch

[IP]Director

7.88.18.78.78.58.67.3

9.4

6.27.3

9.86.9 Launch

XT[2]

1Q02

2Q02

3Q02

4Q02

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

www.evs-global.com6

EUR millions

Geographical overview: 2Q09 revenue2Q09 NALA 17% EMEA 49% APAC 62%2Q09: NALA -17%, EMEA -49%, APAC -62%

Revenue, EUR millions, quarterly

18.920.0

NALA EMEA APAC

4.43 8

13.2

9.610.5

13.3 13.5

10.8

6.9

8.3

10.9

15.514.4

5.7

10.89.6

4.6 4.9 4.7 5.3

8.2 7.9

9.58.1

5.26.7 6.9

10.0

4 24.9

5.84.9

5.7 5.1 5.5 5.36.5

4 3

8.67.2

3 8

9.6

5.83.8

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

2005 2006 2007 2008 2009

2.82.1 2.5

4.2


2005 2006 2007 2008 2009

0.91.9 1.8 1.8

3.42.4

4.3 3.8

2.13.3


2005 2006 2007 2008 2009

3.3

Impact from weak economyNew medium-size OB vansGrowing HDTV

Impact from weak economyHD viewers take-off signs

Strong Impact from weak economy, and tough comparison against strong 2Q08 (Olympics in Asia)

Studio ~ 34%

Stronger USD

Studio ~ 28%

Weaker UK & GBP

Studio ~ 37%

Stronger JPY, weaker KRW

www.evs-global.com7

Agenda



Outlook

Corporate

www.evs-global.com8

Reinforcement in live graphics skillsF b i hiFor basic graphics purposes

Acquisition of tech assets & key patentsHiring of some experienced R&D engineers

Editorial and analytical enhancements for live sport productions

As an embedded add-on in the XT LSM applicationsAnalytical tools (off-side line, free kick circles and distances)Virtual logos (merchandising)Virtual logos (merchandising)Virtual video wall (studio insert, program transitions)Real-time, adding great value to live sport productions

fNo full-set 3D strategy, basic live add-ons

www.evs-global.com9

Horse racing in AustraliaEVS t th h t f TVN tEVS at the heart of TVN system

TVN (Australia): premium sports and interactive management company that specializes in horse racingracingEVS solution:

Ingest of multiple camera angles and content immediately available for live replays highlightsimmediately available for live replays, highlights packages, etcMultiple users access and control for simultaneous reviewing or production actions through a media production networkBack up and storage of races and interesting sequences on archive devicesReliable and intuitive multiple camera reviewing capabilities for stewards’ team, helping them in their judging decisions

Horse racing becoming more and more

www.evs-global.com10

Horse racing becoming more and more successful

Tennis Grand Slam - WimbledonB i bi tBecoming big events

Key statisticsMore than 11,000 hours broadcasted in 175 countries, available to 760 million homes and reaching an estimated cumulative audience of 345 million people11 million people looking at the end of the final in the UKWimledon.org: 12.3 million unique users (+23%); 700,000 download of the new Wimbledon iPhone “App”Wimledon.org: 12.3 million unique users ( 23%); 700,000 download of the new Wimbledon iPhone App

Host Broadcast: BBC (available on TV, web, mobile, radio - live & on-demand)Full HD production, sound Dolby 5.1Broadcast center of 5,000 sq.m.4 OB vans – 53 HD cameras (incl. 8 SuperMotion), of which 19 to cover centre court20 EVS XT[2] servers for live production, 31 HD VTR used for archiving47TB SAN server 80 km of cabling47TB SAN server, 80 km of cabling4 Final Cut Pro editing stations

In total, around 100 XT[2] servers used for the coverage of WimbledonXT2Web allowing distant access to the clips located on the XT[2] serversXT2Web allowing distant access to the clips located on the XT[2] serversOther key international broadcasters include NBC, ESPN and the Tennis Channel in the USNo 3D yet while Roland Garros broadcasted a few games


No 3D yet, while Roland Garros broadcasted a few games

Agenda



Outlook

Corporate


Installed base evidences future potential4 300 EVS servers (23 000 I/O channels)4,300 EVS servers (23,000 I/O channels)

I ti & thL h# of

Launch of

Innovation & growth

6,000+ usersEVS Academy

Launchof

4,1004,300

Launchof

XT*HD Ready

L h

Launchof

HD

EVS Academy

40-45% is HDStill 55-60% SD to upgrade1 Upgr for 7 new in 2008

2,850

3,500

,

XT*SD

1,200

2,3001,900

1,500

Launch of

XT

HD 1 Upgr for 7 new in 2008

networked systems800 IP DirectorsXNet, XHub,

HCT*SD

1,000,

700 850500

, ,Xstore, XfileMediaXchange…

30% in Studio /

@December 31

70% in OB trucks *

www.evs-global.com13* Estimates that include some assumptions for sales prior to 2005

Sizing the opportunity for live video mgt10.000 TV Stations worldwide, growing, + web video offerings, g g, g100.000 Professional Broadcast Cameras, growing

Based on current OUTSIDE MULTICAMERABased on currentmarket conditions

OUTSIDEproduction

MULTICAMERA STUDIO

production(sport, music, reality TV)

production(entertainment, drama, series, sport mags, talk

shows, weather, adverts)#cameras#intermediate feeds (ex.sat) # channels to ingest

15,0001,00016,000

85,00085,000170,000

x10

ket

Current EVS potential % 100% 30-40%

Servers Penetration % 45-65% 20-40%

Mar

k

HD Penetration % 20%-60% 10%-45%

EVS Solutions Mkt share 90+% 15-35%

Current # EVS servers ~2 700 ~1 000EVS

[ ~ 600 ]


Current # EVS servers 2,700 1,000

Note: one EVS server currently manages between 1 and 6 channels

Estimates mid 2009

E [ 600 ]

Open Order Book at July 1Usual post olympic move industry wide slow downUsual post olympic move, industry-wide slow down

EUR 8.0 m22.9

Studio represents 41% of the open order book and

0.3

6.5Big events rentals

the open order book and 30% of the total order intake in 1H09

EUR 5 9 million for 2010

-51%16.5

EUR 5.9 million for 2010 and beyond

Quick delivery time8 0

16.2 16.4

8 0

BL 01/07, excl. events rentals

8.0

8.0

2007 2008 2009

rentals


2007 2008 2009

Looking at 2010 and beyond … Poor visibility for 2009Poor visibility for 2009

2008 2010 2012 2014

Expected lower revenue and profitabilityNo visibility

2009No major sporting eventsEUR 9.0 mio rentals in 2008 relating to big eventsEconomic and credit crisesCurrency fluctuations


Continued opex growthFocus on product developments

Agenda



Outlook

Corporate


EVS shareholding as of June 30, 2009in % shares and issued warrants – based on last received shareholders statementsin % shares and issued warrants based on last received shareholders statements

Founders19 0%

June 30, 2009 stock data:

Basis : 13,625,000 ordinary sharesOutstanding warrants : 125 650 @46

*19.0%

Fortis IM

Outstanding warrants : 125,650 @46Treasury shares : 64,675 sharesMkt Cap @35.0: EUR 475 million

2009 stock data: 4.2%

Cytindus2.3%

BIP

2009 stock data:

Standard velocity: 93.7% (12 months)Average daily volume:

42 000 shares

*

2.9%

Barclays Global3.1%

Treasury shares0.6%

Unidentified67.9%

- 42,000 shares- EUR 1.2 million

EVS has not bought backEVS has not bought back any shares yet in 2009


* Board members

Corporate Calendar2009

Thursday August 27, 2009: 2Q09 earningsThursday August 27, 2009: 2Q09 earnings

Sept. 10-Sept. 15, 2009: IBC Amsterdam

Thursday November 12, 2009: 3Q09 earnings


ConclusionsWorst is behind

Revenue, EUR 18.4m

Weak 2Q09, but better than 1Q08 and 4Q08

Open order book of EUR 8 0 mOpen order book of EUR 8.0 m

Acquisition of strong expertise in live graphics

2009: poor visibility, looking towards 2010

Good confidence in the future potential of the company and new niches, focus on R&D


Contacts

Jacques GALLOY, Director & CFOGeoffroy d’OULTREMONT, IRO

Tel: +32 4 361 70 14Fax: +32 4 361 70 89Email: corpcom@evs tvEmail: [email protected]://www.evs-global.com


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